Analyst Ratings February 20, 2026

Barclays Opens Coverage on Gilead at Equalweight, Flags Rich Valuation Despite Strong Results

Initiation comes after a period of underperformance and a Q4 2025 beat that has drawn mixed analyst reactions

By Maya Rios GILD
Barclays Opens Coverage on Gilead at Equalweight, Flags Rich Valuation Despite Strong Results
GILD

Barclays has initiated coverage of Gilead Sciences Inc. with an Equalweight rating and a $155 price target, citing a return to the company’s infectious-disease focus but noting that recent share gains and valuation compress the upside. Gilead’s Q4 2025 results topped expectations and several peers raised targets, while others remained cautious.

Key Points

  • Barclays initiated coverage on Gilead with an Equalweight rating and a $155.00 price target - impacts equity markets and healthcare sector sentiment.
  • Gilead’s shares trade at $151.12, near a 52-week high of $157.29 and up 29% over six months, while valuation metrics like a Price/Book of 8.29 appear rich versus historical levels - relevant to investors focused on valuation and capital markets.
  • Gilead posted Q4 2025 revenue of $7.93 billion and adjusted EPS of $1.86, beating consensus and prompting several firms to raise price targets, underscoring the commercial strength of its HIV franchise.

Barclays has started formal coverage of Gilead Sciences Inc. (NASDAQ:GILD), assigning an Equalweight rating and establishing a $155.00 price target, the firm said Thursday. The initiation was led by analyst Carter Gould.

The bank’s note highlights that Gilead has re-centered on its core competency - developing and commercializing treatments for infectious disease - after a stretch of underperformance. Barclays pointed to that prior weakness as tied to a hepatitis C virus (HCV) bolus and the company absorbing business development deals that did not deliver as expected.

Shares of Gilead traded at $151.12 at the time the note was reported, sitting close to a 52-week high of $157.29 and marking a roughly 29% gain over the last six months. Barclays said the strong run-up in the stock, combined with valuation metrics that appear elevated versus the company’s historical range, supported its decision to rate the shares Equalweight.

One valuation cited in the coverage initiation is a Price/Book multiple of 8.29. Complementary data from InvestingPro was noted in the commentary, with InvestingPro analysis indicating the shares remain near fair value and reporting a Piotroski Score of 9 for Gilead, a measure that points to robust financial health under that framework.

The coverage initiation and valuation assessment arrive amid a wave of analyst responses to Gilead’s recent quarterly disclosure. The company reported fourth-quarter 2025 revenue of $7.93 billion, ahead of the consensus estimate of $7.70 billion, and adjusted earnings per share of $1.86, exceeding the expected $1.83.

Following those results, several firms adjusted their price targets upward: Bernstein increased its target to $160, citing a favorable growth outlook; Wolfe Research raised its objective to $170 and pointed to strength in Gilead’s HIV franchise, including 31% year-over-year growth in Descovy and $150 million in sales from the Yeztugo launch; UBS boosted its target to $175 while noting forthcoming data on long-acting HIV treatment candidates. Truist Securities moved its target to $152 and kept a Buy rating, referencing the HIV portfolio’s strength. By contrast, Goldman Sachs maintained a Neutral rating and a $125 price target after the earnings release.

Barclays’ Equalweight stance reflects a view that, while operational momentum and recent results have been positive, the combination of a sharp share-price rebound and rich valuation metrics limit upside from current levels. The initiation underscores the divergent views among sell-side analysts about how to value Gilead in light of recent performance and upcoming data catalysts.


Note: This article reports on analyst coverage and company-reported financials as stated above.

Risks

  • Valuation risk - Barclays cites that the recent share rally and an elevated Price/Book multiple (8.29) reduce potential upside, affecting equity investors and portfolio managers.
  • Operational and deal-risk legacy - Barclays noted prior underperformance tied to an HCV bolus and business development transactions that did not meet expectations, a consideration for stakeholders evaluating growth durability in the biotech and pharmaceutical sectors.
  • Catalyst uncertainty - UBS flagged upcoming data on long-acting HIV treatment candidates as a driver; the timing and outcome of such data create uncertainty for the stock and for market expectations around Gilead’s HIV franchise.

More from Analyst Ratings

BofA Lifts CF Industries Price Target After Strong Q4 EBITDA; Maintains Underperform Rating Feb 20, 2026 Truist Lifts Tandem Diabetes Price Target as Company Shifts Toward Pharmacy Model Feb 20, 2026 BWS Financial Boosts A10 Networks Price Target Citing AI-Driven Network Traffic Feb 20, 2026 Supreme Court Ruling Boosts Steve Madden Outlook, Analysts Say Feb 20, 2026 UBS Lowers Carvana Price Target Citing Higher Costs, Keeps Buy Rating Feb 20, 2026